Private equity returns continued to outperform the S&P 500 over the long term, according to the most recent quarterly Performance Update Report from the Private Equity Growth Capital Council (PEGCC). According to the PEGCC, as of June 30, 2014, returns from private equity funds (net of fees) beat the S&P 500 (including dividends) for the 10-year horizon by 6.5 percentage points.
“As this latest report shows, private equity is the best option for pension funds for a secure long-term investment,” said PEGCC President and CEO Steve Judge. “Our research has consistently found that over a 10-year horizon, private equity outpaces the S&P 500 and all other asset classes.”
Returns to public pension funds on private equity investments for the 10-year horizon also beat the S&P 500, by 5.9 percent.
The PEGCC’s measure for private equity fund performance is based on the median of publicly available benchmarks. This median measure indicates that private equity funds returned an annualized 14.3 percent, 17.7 percent, 14.5 percent, and 22.4 percent during 10-year, 5-year, 3-year and 1-year periods, respectively.
PEGCC calculates the excess returns from private equity by comparing the median values from third party data providers to the S&P 500 Total Return index. The research was compiled using data as of June 30, 2014, the most current data available. For a PDF copy of the latest Performance Update Report from the PEGCC click HERE.
The Private Equity Growth Capital Council is an advocacy, communications and research organization and resource center established to develop, analyze and distribute information about the private equity and growth capital investment industry. Founded in 2007 and formerly known as the Private Equity Council, the PEGCC is based in Washington, DC (www.pegcc.org).
© 2015 PEPD • Private Equity’s Leading News Magazine • 2-4-15